How many dwellings you can build on a Melbourne block is governed less by ambition than by three numbers in your planning scheme: the garden area requirement, the maximum site coverage, and the building height limit attached to your zone. Using SQM Architects’ Subdivision Screener and current ResCode zone rules for Melbourne’s eastern councils (verified April 2026), the indicative yield for a typical lot ranges from 2 dwellings on a 500m² block to 6 apartments on a 1,000m² Residential Growth Zone site — and the zone, not the land size, is usually the deciding factor.
The figures below are indicative planning-capacity estimates, not a guarantee of approval. They are intended to help Victorian developers sanity-check a site before committing to an indicative assessment or acquisition.
Indicative dwelling yield by lot size and zone (Melbourne)
The table summarises the maximum viable yield our Subdivision Screener returns for standard lot dimensions across the three main residential zones, using Boroondara’s current ResCode parameters (General Residential and Neighbourhood Residential share a 35% garden area requirement; Residential Growth has none).
| Lot size | GRZ1 (General Residential) | NRZ1 (Neighbourhood Residential) | RGZ1 (Residential Growth) |
|---|---|---|---|
| 500 m² (15.5 × 32 m) | 2 dwellings — dual occupancy | 2 dwellings — dual occupancy | 2 dwellings — dual occupancy |
| 650 m² (16 × 40 m) | 2 dwellings — dual occupancy | 2 dwellings — dual occupancy | 2 dwellings — dual occupancy |
| 800 m² (18 × 44 m) | 3 dwellings — townhouse row | 2 dwellings — dual occupancy | 5 dwellings — low-rise apartments |
| 1,000 m² (20 × 50 m) | 3 dwellings — townhouse row | 2 dwellings — dual occupancy | 6 dwellings — low-rise apartments |
Indicative only. Computed by the SQM Architects Subdivision Screener from zone rules sourced via the Victorian Planning Provisions (Clauses 32.07–32.09), City of Boroondara schedules verified April 2026 — confirm current amendment via the Victorian Planning Provisions. Site-specific factors will change the result — see the caveats below.
The garden area rule is the real yield ceiling
For most General and Neighbourhood Residential sites, the binding constraint is the garden area requirement of 35% for lots above 650m² (25% for 400–500m², 30% for 501–650m²). On an 800m² GRZ1 lot, that 35% reserves roughly 280m² as unbuilt garden before a single wall is drawn — which is why the same block yields three modest townhouses rather than four.
Site coverage works alongside it: GRZ1 permits up to 65% coverage and NRZ1 only 60%. The gap looks small, but combined with NRZ1’s lower 9m height limit it is the reason a Neighbourhood Residential block caps at two dwellings even at 1,000m², while the equivalent General Residential block reaches three.
Zone, not size, sets the ceiling
The clearest lesson from the data is that doubling your land does not double your yield — changing your zone can:
Get the 10-page Site Assessment Checklist Melbourne developers use to evaluate sites before committing capital. Free PDF, instant download.
- Zone, overlay & setback checks
- Dwelling capacity estimation
- Council-specific red flags
Something went wrong. Please try again.
No spam. Unsubscribe anytime.
Check your inbox — your checklist is on its way.
- Neighbourhood Residential Zone (NRZ1): the most restrictive. A 35% garden requirement, 60% coverage and a 9m (effectively two-storey) height limit hold yield to two dwellings across every lot size tested, with generous 211–497m² of livable area per unit.
- General Residential Zone (GRZ1): the workhorse for townhouse developers. The extra 5% coverage and 11m height lift an 800m²+ block to a three-unit townhouse row of roughly 280–360m² livable area each.
- Residential Growth Zone (RGZ1): a step change above 800m². With no garden area requirement, 70% coverage and a 13.5m height limit, the same 800m² site may support five low-rise apartments, and a 1,000m² site may support six (around 85m² each). Below 800m², though, RGZ behaves like its neighbours — apartment formats are not viable on small frontages, so a 500m² Growth Zone lot still yields a dual occupancy.
Council schedules can quietly cut your yield
Two councils in the same zone are not always equal. City of Boroondara and City of Monash both apply the standard GRZ1 height of 11m, but City of Manningham’s GRZ1 schedule caps height at 9m (verified April 2026 — confirm via the Manningham planning scheme). For two-storey townhouses the dwelling count is unchanged — three on an 800m² lot — but the lower limit removes the option of a partial third level, trimming saleable floor area. Where a council schedule departs from the Victorian Planning Provisions default, it almost always reduces what you can build, so confirm the schedule before you model returns.
How these numbers are calculated
Each figure is produced by applying ResCode’s quantitative standards in sequence: deduct the garden area requirement, apply the maximum site coverage to the balance, subtract front, side and rear setbacks (6m / 1m / 3m as the relevant defaults), and test the remaining building envelope against the minimum viable livable area for each typology. The screener then reports the highest-yield option that remains viable — a dual occupancy, townhouse row or low-rise apartment building — rather than a theoretical maximum that would never pass a planning assessment.
From indicative to bankable
These estimates assume a regular, unencumbered lot. Your actual yield may be lower where any of the following apply:
- Overlays — a Heritage, Significant Landscape or Vegetation Protection Overlay can reduce height, coverage or removable vegetation.
- Frontage and shape — narrow or irregular frontages limit side-by-side townhouses and driveway access regardless of area.
- Council discretion and the neighbourhood character — ResCode standards are largely discretionary; a responsible authority can refuse an otherwise-compliant design on character grounds, and that decision may be tested at VCAT.
- Servicing, easements and trees — drainage, sewer easements and protected trees frequently remove a dwelling from the plan.
Treat the table as a first-pass screen. A site-specific indicative assessment — testing your actual title dimensions, overlays and council schedule — is what turns an indicative number into a development plan worth pursuing.
Frequently asked questions
How many townhouses can I build on an 800m² block in Melbourne?
On a standard 800m² General Residential (GRZ1) lot in Melbourne, the indicative yield is three townhouses of roughly 280m² livable area each, after allowing for the 35% garden area requirement and 65% site coverage. A Neighbourhood Residential (NRZ1) lot of the same size typically yields two.
What is the minimum lot size for a dual occupancy in Victoria?
There is no fixed statewide minimum, but as an indicative guide a dual occupancy becomes viable from around 450–500m² with a frontage of at least 10m, subject to the garden area requirement and council schedule for your zone.
Why does a Residential Growth Zone lot yield more than General Residential?
The Residential Growth Zone (RGZ) carries no garden area requirement, a higher 70% site coverage and a 13.5m height limit, which together make low-rise apartment formats viable on lots of 800m² and above — five to six dwellings where a General Residential lot of the same size yields three townhouses.
This article provides general information only. For project-specific guidance, consult with qualified professionals.
Reviewed May 2026 by Sammi Lian, Principal Architect — SQM Architects (ABN 32 600 928 390, ARBV Reg. No. 51498). This article is general information about Victorian planning and development, not personal, legal or financial advice.
